MILLIONS COULD OVERLOOK JOB-SEARCH TAX DEDUCTIONS
As the mad scramble to meet the April 15 tax deadline reaches its peak this week, millions of jobless Americans could be eligible for easily-overlooked deductions. More than 3.8 million people joined the ranks of the unemployed in 2009. About 3.6 million were added to the roles of long-term unemployed (jobless for 27 weeks or longer). For these Americans, important tax deductions to consider are those related to job-search expenses. If these expenses, along with other miscellaneous expenses, including unreimbursed employee expenses and professional association membership dues, add up to 2% of one’s adjusted gross income, the amount above the 2% threshold becomes eligible for deductions. Many people overlook job search expenses, assuming that they won’t add up to much. However, for the long-term unemployed with a significantly reduced adjusted gross income, it is much easier to reach the 2% limit. Add expenses related to professional resume services, job-search related travel, or employment agencies fees and one’s expenses could soar well beyond the 2% level. Most deductions are only applicable if you are looking for a new job in the same occupation.
Some deductions include:
Resume service expenses (includes creating, printing and copying resume)
Job-Search-related travel or transportation expenses
Cost of phone calls to potential employers/contacts